Very few economic remedies prove effective when their success is judged in advance of their implementation, as is the case now. Given the breadth of the economic problems, everything the government proposes is scrutinized and debated to such an over extent, that the measure is considered DOA even before the first step is taken. Surely such a high level of pessimism can't be good.
Taxpayer advocates would argue that direct investment by the Federal Government into the stock market would benefit only those taxpayers that own stocks. But we would see the market averages immediately climb off the bottom, inhibit the short sellers, provide future potential profits for taxpayers and improve the overall tone of sentiment and investment into the economy.
If the Federal Government were to take some of those $Billions that they are passing around like so many tic tacs and buy stocks directly in the open market we would see the markets stabilize and investment in strong companies whose stocks have been oversold would rise.
Of course they should not say which stocks they are buying or limit the buying to a particular industry. The questions of exactly who would decide what stocks to buy, when to buy them, in what quantities and how long to hold them are all good questions, but could be answered.
This might seem an untenable action by some, but taking a longer term view of the markets and the economy, it is hard to see that it would not prove profitable to taxpayers before very long.